Gujarat Gas Limited (GGL) is a government company u/s 2(45) of Companies Act 2013. Formerly Known as GSPC Distribution Networks Limited(GDNL), GGL is engaged in the business of Natural gas in India. The business of natural gas involves distribution of gas from sources of supply to centres of demand and to end customers. GGL caters to its customers by providing CNG and PNG connections in domestic, Industrial, Commercial and Non commercial segments in the areas of South & Central Gujarat and Saurashtra. The stock is taking support at its long term support at 440 levels and looks to rebound to rebound to 550 levels and beyond based on following inputs. • Gross revenue stood at Rs.4,333 cr, better than our expectation of Rs.4,136 cr. • Gas volume up 8% qoq to 0.95 cr mscmd better than our estimate (0.89 cr mscmd). • Operating profit of Rs.380 cr in Q3FY25, better than our expectation of Rs.358 cr. • Q3FY25: Margin v/s Volume-Company sacrificed margins for volumes. • Gujarat Gas has appointed Mr. Pankaj Joshi, IAS as the new Chairman. • The company has added 5 new CNG stations in Q3FY25. • Co. is aggressively pushing for FDODO (Full Dealer Owned Dealer Operated) model, which will help in accelerating growth for the future. • Added ~38,200 new domestic customers in Q3FY25. • We like GGCL’s resilient business model and have valued GGCL at 20x FY27E.

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